Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270-2012

COUNCIL OF MINISTERS REGULATION No. 270/2012         DOWNLOAD (.pdf)

COUNCIL OF MINISTERS REGULATION ON INVESTMENT INCENTIVES AND INVESTMENT AREAS RESERVED FOR DOMESTIC INVESTORS

This Regulation is issued by the Council of Ministers Pursuant to Article 5 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 691/2010 and Article 39 of the Investment Proclamation No.769/2012.

PART ONE GENERAL

1. Short Title

This Regulation may be cited as the “Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270/2012”.

2. Definitions
In this Regulation unless the context otherwise requires:

1/ “Proclamation” means the Investment Proclamation No. 769/2012;

2/ the definitions provided for in Article 2 of the Proclamation shall also apply to this Regulation;

3/ “Agency” means the Ethiopian Investment Agency re-established under the Council of Ministers Regulation No. 269/2012;

4/”Board” means the Investment Board referred to in

Article 6(1) of the Council of Ministers Regulation No. 269/2012;

5/”capital goods” means machinery, equipment and their accessories needed to produce goods or render services and include workshop and laboratory machinery and equipment necessary for same;

6/ “construction material” includes basic inputs necessary for the construction of investment projects;

7/ “customs duty” includes indirect taxes levied on imported goods;

8/ “income tax” means tax levied on profits from business and categorized as the revenue of the federal government, regional governments or as their joint revenue.

3. Investment Areas Reserved for Domestic Investors
1/ The following areas of investment are exclusively reserved for Ethiopian nationals:

a) banking, insurance and micro-credit and saving services;

b) packaging, forwarding and shipping agency services;

c) broadcasting service;

d) mass media services;

e) attorney and legal consultancy services;

f) preparation of indigenous traditional medicines;

g) advertisement, promotion and translation works;

h) air transport services using aircraft with a seating capacity up to 50 passengers.

2/ For the purpose of sub-article (1) of this Article, a business organization may have Ethiopian nationality, provided that its total capital is owned by Ethiopian nationals.

4. Investment Areas Allowed for Foreign Investors

1/A foreign investor shall be allowed to invest in areas of investment specified in the Schedule attached hereto, except those areas provided for in number 1.3.3, 1.4.2, 1.7, 1.11.3, 1.11.4, 5.3, 6.2, 8.2,9.2,9.3 and 12 of the Schedule.

2/ Notwithstanding the provisions of sub-article (1) of this Article, the Board may allow foreign investors to invest in areas other than those specified in the Schedule, except those areas provided for in Article 6 (1) and (2) of the Proclamation and Article 3(1) of this Regulation.

3/ A foreign investor who invests pursuant to sub-article (1) or (2) of this Article may acquire a private commercial road transport vehicle necessary for his business operations. Continue reading Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270-2012

Proclamation No.769/2012 Investment Proclamation

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Preamble

PART ONE GENERAL

PART TWO INVESTMENT OBJECTIVES AND AREAS OF INVESTMENT

PART THREE FORMS OF INVESTMENT AND CAPITAL REQUIREMENT FOR FOREIGN INVESTORS

PART FOUR INVESTMENT PERMIT

PART FIVE REGISTRATION OF TECHNOLOGY TRANSFER AND COLLABORATION AGREEMENTS WITH DOMESTIC INVESTORS

PART SIX INVESTMENT INCENTIVES GUARANTEES AND PROTECTION

PART SEVEN INVESTMENT ADMINISTRATION

PART EIGHT INDUSTRIAL DEVELOPMENT ZONE

PART NINE MISCELLANEOUS PROVISIONS

Ethiopian Investment Laws

Investment Proclamations
Proc No. 37-1996 Investment  Proclamation

Proc No. 116-1998 Investment Proclamation (Amendment) 
Proc No. 168-1999 Investment Proclamation (Amendment)   

Proc No. 280-2002 Investment  Proclamation

Proc No. 375-2003 Investment Proclamation (Amendment

Export trade and capital goods leasing business

Proc No 543 2007 The Revised Export Trade  Duty Incentive Scheme Establishing  Proclamation 
Proc No. 103-1998 Capital Goods Leasing Business Proclamation

Bilateral agreements
Proc No. 70-1997 The Investment Promotion and Protection Agreement with the State of Kuwait Ratification

proclamationProc No. 324-2003 A Proclamation to Ratify the Investment Incentive Agreement between the Government of theFederal Democratic Republic of Ethiopia and the Government of the United States of America

Proc No. 404-2004Investment Encouragement and Reciprocal Protection Treaty with the Federal Republic of Germany Ratification
Proc No. 405-2004 Investment Reciprocal Encouragement and Protection Agreement with the Government of the Republic of  France Ratification
Proc No. 406-2004 Investment Encouragement and Reciprocal  Protection Treaty with  the Great Socialist People’s Libyan Arm, Jamahiriya Ratification
Proc No. 417-2004 Investment Reciprocal Promotion and Protection Agreement with  the Republic of Tunisia Ratification
Proc No. 436-2005 European Investment Bank Finance Contract  for financing small and medium sized private sector enterprises Ratification
Proc No. 460-2005 Investment Promotion and Protection Agreement with the Republic of Austria Ratification
Proc No. 461-2005 Investment Promotion and Reciprocal Protection Agreement with the Kingdom of Sweden Ratification
Proc No. 69-1997 The Investment Promotion and Protection Agreement with the Government of the Republic of Italy Ratification Proclamation

Investment incentives and investment areas reserved for domestic investors

Reg No. 7-1996 Investment Incentives Council of Ministers Regulations No. 7/1996]

Reg No. 9-1996 Investment Incentives (Amendment)

Reg No. 35-1998 Investment Areas Reserved for Domestic investors  
Reg No. 36-1998 Investment Incentives Council of Ministers (Amendment)
Reg No. 84-2003 Investment Incentives and Investment Areas Reserved for Domestic Investors 

Reg 146 Investment Incentives and Investment Areas Reserved for Domestic Investors